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It’s no secret that social networks have had a difficult time integrating advertising that has a bang for its buck. IDC has released some data showing what social networks - and advertisers - are faced with.

Only 57% of social network users have clicked on an ad in the last year versus 79% of all users in the rest of the web.

When it comes to purchasing, only 11% of social network users will actually make one compared to 23% of the rest of the internet.

“The thinking has been that the popularity of SNS will attract a big audience and generate a lot of traffic, which in turn will produce enormous amounts of user-generated content (UGC) and therefore advertising inventory – without any expenses for editorial staff or content distribution deals,” said Karsten Weide, program director, Digital Marketplace: Media and Advertising. “All of the above has proven true – except that almost invariably, SNS have had a hard time selling this inventory.”

Related Reading:
The Number of Small Businesses Using Social Media to Double in 12 Months
MySpace Launches Self-Service Ad Platform
93% of Americans Expect Companies to Have Social Media Presence

On Sunday, Web Guild spread fear around the internet by ‘exposing’ Google’s quiet layoffs, which were said to be upwards of 10,000 employees. And Google was supposedly getting away with it through secretive loopholes that only corporate lawyers know about. They were hiring workers and not paying them benefits.

Actually, those people are called independent contractors and they knowingly enter into those agreements.

Google is reducing its contractor workforce, but it’s something they’ve had planned for a long time. Of course, the timing of implementation couldn’t be worse. Especially since contractors generally don’t get unemployment benefits once terminated. Independent contractors are essentially self-employed.

Related Reading:
Google Q3 Revenue Increases 31% Year-Over-Year, Up 3% Over Q2 2008
Google Pulls the Plug on Lively

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